K–12 Education Credit

Only students from families who meet certain income restrictions can claim the credit. A family with one or two children must have an adjusted gross income of less than $76,000 to be eligible for the credit, and the income ceiling is raised an additional $3,000 for each child after the first two. The household income limits are adjusted to keep pace with inflation each year. Also, parents must be tax filers and have proof of eligible expenses. The refundable tax credit is phased out for taxpayers who earn more than $70,000. For families with one child, the maximum allowable credit is reduced by $1 for every $4 of income above $70,000, and the family may not claim the credit at all if its income is above $76,000. For families with two or more children, the maximum allowable credit is reduced by $2 for every $4 of income above $70,000. _(Last updated July 18, 2024)_

Qualifying expenses include tuition, fees for instruction outside the regular school day, textbooks, a maximum expense of $200 for computer hardware and educational software, and the cost of transportation paid to others. _(Last updated July 18, 2024)_

The maximum credit amount is adjusted by income level. Families with adjusted gross annual incomes not greater than $70,000 may claim $1,500 per child For families with adjusted gross income over $70,000, families with one qualifying child in kindergarten through grade 12 have the maximum credit reduced by $1 for each $4 of adjusted gross income over $70,000, and families with two or more qualifying children have the maximum credit reduced by $2 for each $4 of adjusted gross income over $70,000. In no case is the credit less than $0. Any refunds are funded by an appropriation to the commissioner from the general fund. _(Last updated July 18, 2024)_

No legal challenges have been filed against the program. _(Last updated March 1, 2023)_